Growth adjusted revenue multiples (EV / NTM Revenue / NTM Growth) are back to where they were pre-covid (in graph below). Meanwhile, the NTM Revenue multiple (not growth adjusted, and not shown in the graph) is ~45% below where it was pre-covid

@sv_techie Completely agree!

This is exactly right! The desire to integrate AI will drive enterprises to adopt cloud systems faster - in particular cloud data infrastructure. Data is the key to unlocking true differentiation with AI, and when that data is locked up in on prem systems it's more challenging

Exciting new product release from the @prisma team!

Lots of discussion around where value accrues (incumbents vs startups) with this AI platform shift. While I do think startups will capture significant value over time, incumbents aren't caught in an innovators dilemma like they were in the last platform shift (the cloud). Two…

Awesome post from @dbt_labs about how they use dbt internally to drive critical decision making, using a data warehouse centric approach. Should be required reading for any finance team out there!

This week in enterprise software: Top 10 #SaaS #Cloud multiples as of today's market close

Hashicorp quarter: - $138M rev (+37% YoY) vs $133M consensus (4% beat) - $138M next Q guidance vs $142M consensus (3% miss) - Reduced full year guide by 4% (relative to guidance on last earnings call) - 127% NDR - $6m net new ARR ($95m S&M last Q) - 81% GM - 1% FCF Margin $HCP

This week in enterprise software: Top 10 #SaaS #Cloud multiples as of today's market close

One month later - There's now almost 20 companies trading >10x NTM rev, with the highest close to 20x

Zscaler quarter. They preannounced earlier in May and stock popped 20%. Consensus metrics are from before they pre-announced - $419M rev (+46% YoY) vs $397M consensus (5% beat) - $430M next Q guidance vs $420M consensus (2% raise) - >125% DBNR - 29 months GM adj. CAC payback -…

Asana quarter: - $152M rev (+26% YoY) vs $151M consensus (1% beat) - $158M next Q guidance vs $158M consensus - Raised full year guide by $1m - 110% DBNR - $8m net new ARR (lowest in last 7 quarters. Last year quarterly net new ARR averaged $38m / quarter) - 90% GM - (11%) FCF…

SentinelOne quarter: - $133M rev (+70% YoY) vs $137M consensus (3% miss) - $141M next Q guidance vs $151M consensus (7% miss) - Reduced full year guide by $41m (6%)! - $42m net new ARR, lowest in 6 Qs - >125% NRR - 37 months GM adj. CAC payback - 68% GM - (24%) FCF Margin $S

Mongo historically guides conservatively. The strength in Q2 guide implying Q1 may have been the bottom for consumption headwinds (for them)

Mongo quarter: - $368M rev (+29% YoY) vs $346M consensus (6% beat) - $390M next Q guidance vs $361M consensus (8% raise) - Raised full year guide by $37m (2%) - Atlas +40% YoY - $26m net new ARR (lowest in 2 years, last 2 q's both >$100m) - Q2 guide implies net new ARR going to…

One comment they did make: "we don't see the macro improving now and for the rest of the year. So with that as a backdrop, when we think about deal durations, yeah, sure we think deal durations are going to be shorter."

Crowdstrike had a more upbeat tone on their earnings call than Okta (in relation to back half demand environment). They called out a record pipeline for Q2, and "a return to YoY growth in net new ARR in H2" Net new ARR was $174m in Q1. This was the lowest it's been in 6…

They also raised their full year guide by 1%. And on the call called out "It [full year guide] does, in fact, assume that the macro does get worse, both on the current RPO side and on the revenue side."

Question on Okta Q&A: Q: "...did the macro actually get worse from last quarter or did it stay the same?" A: "Yes. Yes, it definitely got worse." Timing of re-acceleration in software getting murkier. '23 numbers feel de-risked, but '24 numbers in question

Okta quarter: - $518M rev (+25% YoY) vs $510M consensus (2% beat) - $534M next Q guidance vs $527M consensus (1% raise) - Raised full year guide by $18m (1%) - 117% NRR - $32m net new ARR added vs $260m S&M last Q - 73% GM - 24% FCF Margin $OKTA

Crowdstrike quarter: - $693M rev (+42% YoY) vs $677M consensus (2% beat) - $722M next Q guidance vs $720M consensus (in line) - Raised full year guide by $34m (1%) - $2.73B ARR - >120% DBNR - 22 months GM adj. CAC payback - 76% GM - 33% FCF Margin $CRWD

A great listen

This week in enterprise software: Top 10 #SaaS #Cloud multiples as of today's market close

@GavinSBaker And they followed it up with beating that quarter by 33% and guiding up 41%!

@GavinSBaker Reminds me of this Zoom quarter at the start of the pandemic. Guidance came in 123% above consensus!